An overview of Digital Economy and Digital transformation in Iran · 2019-07-07 · 9 Why Digital Economy is so important for Iran Due to this fact that service sector has the main

Economic studying Department (ICT Ministry )

ITU Workshop (July 2019)

Presented By

Jamal Sophieh

V:4

An overview of Digital Economy and Digital

transformation in Iran

بنام خدا

2

What we mean by digital economy? What are its

boundary? Spill over effect

3

The Digital Economy Assessment Framework

from the OECD's perspective

According to the International Standard Industrial Classification

(ISIC), the economy of the Information and Communication

Technology (ICT), which is the basis for measuring the core of

digital economy, consists of four sub-sections:

Telecommunication

ICT Manufacturing

IT and other information services

Software Publishing

4

Estimating and measuring the four subsectors in the “Core

of Digital Sector” based on the classification of the

economic activities of ISICv4 in Iran satellite Accounts in

2017

(based on the results of the ICT satellite accounts)

5

Digital economy in Iran (share of GDP) data

from national statistics office based on ISICv4

OECD classification of activities

growth

Telecommunication

IT and other

information services

ICT Manufacturing

Software Publishing

ICT Sector

6

Share of ICT sector from GDP in Iran

1.41

1.25

1.411.49 1.52

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

2012 2013 2014 2015 2016

share of ICT sector from GDP

share of ICT sector from GDP

2012 2013 2014 2015 2016

7

Some challenges in measuring and defining

Digital Economy

Data and statistics

Definition and boundary

Production-oriented of GDP

Measurement approaches and lack of standard measurement method

Free digital services

Societal and well-being effects not captured in GDP

8

Preparing the National document of roadmap on

digital economy and digital transformation

The aim is provide strategies and guidelines to foster the digital economy activities in Iran by taking into account the interests and views of main stakeholders

through interviews with various experts and professionals.

Identifying and selecting the emerging technologies that we have relative economic advantages in Iran.

Investigating the ICT ecosystem

Identify the country’s problems and challenges

A joint project by ICT Ministry and University of Tehran.

9

Why Digital Economy is so important for Iran

Due to this fact that service sector has the main share of

Iran’s economy and since service sector in comparing with

other sectors (such as industry, agriculture, oil ) is highly

ICT-intensive, therefore ICT and consequently digital

economy can have the highest impact on improving the

country’s productivity and national output.

This fact can justify the value of paying

more attention to digital economy in Iran.

10

Share of service sector in economy of Iran(%)

agriculture

10% oil

9% mine

1%

indusry

12%

energy

5%building

6%

services

57%

11

Potentials and capacities of Iran for

digital economy

12

Trend of growth of Iranian broadband

subscriber(around 85% penetration)

Resource : Regulatory of ICT, 2019

40854305868313 7082016

27923665

54374891

64967156

74518595

2012 2013 2014 2015 2016 2017 2018

Iran broadband subscribers

2012 2013 2014 2015 2016 2017 2018

13

ICT Indexes in Iran-2017

Percentage of households with a computer 70%

Percentage of households with Internet access 73%

Percentage of individuals using the Internet(6 years old and more) 64%

20172015201320102008

64%45.3%30%15.9%12%

Trend of Percentage of individuals using the Internet

14

IRAN’S ITU INDEXES

IDI INDEX Ranking IN 2017 was 81 out of 167

countries (a little improvement -4 steps upward)

EGDI INDEX Ranking in 2018 was 86 out of 193

countries (a significant improvement – 20 steps

upward)

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Population / Human resource

Young population (15 to 35 years old)

36%

Adult population (35 to 50 years)

26%

Children and adolescents (less than 15 years old)

24.5%

Population over

50 years old

13.5%

15

60%

from

popula

tion of

Iran

Resource: Census of 1995 Statistics

Center of Iran, (2017)

16

The number of ICT graduated people

16 Reference: Information of the Ministry of Research and Technology-2019

Each year 36,000 and 24,000

students will be graduated in

average from computer and

electric fields respectively, that

they would be added to ready

to work young population.

In average there are annually about 60,000

graduated students in computer and electric

fields. Over the next five years potentially

nearly 300,000 students of STEM fields will be

graduated.

74.5

88.5

camputer

electronic

other field

17

The number of Universities, Research centers,

Incubators and Science and Technology Parks

17

• 149 universities and high education centers

• 324 non-governmental institutes

• 137 private high education institutes

Universities and Research Centers

• 179 Incubator centers Incubators

• 42 Science and Technology Parks Science and Technology parks

Source: Ministry of Science and Technology Research(2017)

18

Knowledge-base companies, VCs, accelerators and

Start-ups (2017)

Start-ups

Nearly 4200

start-ups

Accelerators

60

VCs

40

Knowled-base companies

3371

resource

•Vice President of Science and Technology

•isfahanplus.ir

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60% OF POPULATION IS UNDER 35 YEARS OLD

113% MOBILE PENETRATION

78.2%MOBILE BROADBAND PENETRATION RATE

ALL INSTITUTES & ORGANIZATIONS ARE CONNECTED TO NATIONAL INFORMATION EXCHANGE (NIX)

The strenghts of the country

1

2

3

4

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Macro Goal of Digital Economy in Iran

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Based on mentioned Iran’s potential

and capacities, our country’s main goal

is increasing the share of Digital

Economy in GDP and also digital

economy spill over in all other sectors

and as a driver for whole economy

21

DIGITAL IRAN’S PILLARS

E-Services

Data Regulatory &

Legislation E-Governance

Broadband

(connectivity) Skills set

Policy Security and

Privacy (Trust)

22

Goals over a 5-year plan(IT and other Information services sub-sector)

Increasing the share of IT services sub-sector in GDP

Smart government

IT value added share of GDP (minimum 1.5%)

Providing 100% of e-government infrastructure

Offering 100% of e-services by government

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Goals over a 5-yearsplan(TELECOM SUB-SECTOR )

Providing the e-services infrastructure for 80% of rural areas with a population of more than 20 households

Average of growth of value added of telecom sub-sector in 2017-2021 (19.4%)

Annual growth rate of telecom sub-sector‘s in 2017-2021 )6.5%)

Access of 80% of households to broadband ( at least 20 Mbps per capita )

Increasing the broadband penetration

24